USA fires next shot in China trade war

USA fires next shot in China trade war

US Trade Representative Robert Lighthizer said there was "no justification" for China's retaliation.

The move, which was expected, escalates a trade war with China.

The list could be released as soon as Tuesday, and likely this week, according to the people, who spoke on condition of anonymity because the matter isn't public.

The US has announced its plans to impose taxes on a further $200 billion worth of Chinese imports, in retaliation for China's retaliation to America's first round of tariffs.

Companies are "scrambling to readjust supply chains" so goods bound for the United States don't pass through China, Harborn said at a news conference.

The tariffs could take effect after public consultations end on August 30, according to a statement from the U.S. Trade Representative's office Tuesday.

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Some U.S. business groups and senior lawmakers sharply criticized the latest action on Tuesday, with Senate Finance Committee Chairman Orrin Hatch, a Republican, saying it "appears reckless and is not a targeted approach".

Chinese authorities implemented tit-for-tat tariffs on key USA exports into China, including some major agricultural products.

Up until now, only a few companies, including Harley-Davidson Inc. and Brown-Forman Corp., have publicly said the tariffs will affect their businesses, as most U.S. retailers and consumer brands were spared in the first round of tariffs on Chinese imports. The trade war could also jeopardize China's help in confronting North Korea's nuclear program. Industry groups have also highlighted the duties' potential to derail USA economic growth.

The Trump administration has accused companies in China of repeatedly committing intellectual property theft and other unfair trade practices, while it says China's government remains unresponsive to its concerns. But Trump hasn't backed down, arguing that China's unfair trading practices are hurting American workers. Chinese tactics, the administration said, include outright cybertheft and forcing USA companies to hand over technology in exchange for access to the Chinese market.

The U.S. Chamber of Commerce, which has supported Mr Trump's tax cuts and efforts to reduce regulation of businesses, also criticised the administration's move.

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